The EDI 845 format
The EDI 845 document allows for the efficient and accurate communication of pricing authorization information, ensuring all parties agree on the terms and prices before the order is fulfilled.
Here’s an outline of the key segments typically found in an EDI 845 document:
CUR: Currency
REF: Reference information
DTM: Date/time reference
PER: Administrative communications contact
N1-N4: Name and address
ACK: Line item acknowledgment
CTP: Pricing information
How is the EDI 845 used?
Acknowledgment of price authorization:
Suppliers use the EDI 845 to respond to a request for price authorization (EDI 844), confirming or rejecting the requested prices and terms.
Communication of pricing changes:
Status updates:
Error resolution:
Record keeping:
Benefits of using an 845 Price Authorization Acknowledgement Status
While the EDI 845 is used to acknowledge price authorizations, it can also improve operational efficiency, cost savings, enhanced data management and partner relationships.
Increased efficiency:
The automated exchange of price authorization information via the EDI 845 reduces the time and effort required to process price changes manually, leading to faster and more efficient operations.
Improved accuracy:
By using a standardized format, the EDI 845 reduces the risk of human error in communicating pricing information, ensuring that all parties have the same correct data.
Cost reduction:
Automating the exchange of pricing information with the EDI 845 saves on costs associated with paper-based processes, including printing, mailing and storage expenses.
Enhanced relationships:
Quick and clear communication of pricing acknowledgments helps maintain good relationships between suppliers and buyers, as it sets clear expectations and reduces misunderstandings.
Better compliance:
EDI documents, such as the 845, help ensure compliance with contractual agreements by providing a verifiable trail of pricing communication.
Data analytics:
The data collected through the EDI 845 transaction set can be analyzed for trends and insights related to pricing and sales, enabling better decision-making and strategic planning.
Streamlined operations:
With real-time communication of pricing authorizations, a company’s supply chain operations can adapt quickly to changes in pricing, leading to a more agile and responsive supply chain.
Common issues regarding EDI 845
#1
Many pricing errors occur because the affected parties do not have enough time to load contract pricing before it becomes active. This can be mitigated by providing more notice prior to a contract’s effective date.
#2
Establishing a standardized process that includes issuing the EDI 845 well in advance can help prevent issues. By doing so, the supplier or manufacturer, retailer, distributor and GPO systems are in sync, resulting in price matches and preventing problems with chargebacks and rebates.
Automate 845 Price Acknowledgement Status with SPS Commerce
Managing ongoing EDI tasks can be complex and time-consuming. Full-service EDI providers like SPS Commerce deliver EDI technology and associated staffing resources responsible for customizing, optimizing and operating your EDI solution.
SPS communicates directly with your trading partners to manage connectivity, setup, requirements, updates and support efforts. SPS also takes ownership of understanding your trading partner requirements and making map changes.
SPS Fulfillment proactively monitors and optimizes your solution to prevent errors and minimize data entry.
Interested in learning more about our EDI solution?
Additional EDI Resources
Enter a virtual library of information about EDI for suppliers, vendors and distributors to provide you with the product knowledge you need to power your business.
Ultimate List of EDI Transactions
Here are some of the most common documents and transactions that are supported through EDI automation.
Five Top EDI Documents to Automate
When you automate your most-used EDI documents, it can significantly cut down keystrokes and speed up processes.
EDI Glossary
Terminology including retail definitions, order management models, supply chain roles, software and distribution channels.
EDI for Suppliers & Vendors
Discover how leading vendor and supplier businesses are serving their customers better with EDI solutions from SPS Commerce.
